SUMMATION OF PROPOSED DEAL

As managing partner of one Niagara (ON) with the authority to enter into agreements on its behalf, I am offering the city a chance to partner in the development and opportunities of this gateway property to Niagara Falls, NY.
The deal in sum:
1. ON proposes paying taxes instead of being tax- exempt.
2. ON will demolish the Occidental building, finish filling the Aqua Hole and make the entire parcel -- about 2.5 acres -- into a Visitor’s Amenities Center and parking lot.
3. By Visitor Amenities, ON means information centers, restrooms, telephones, internet access, souvenir sales, food sales, vending, and displays of area attractions and restaurants. The information center would be designed in tandem with the City.
4. The estimated cost to convert the parcel to a Visitor Amenity Center with paid surface parking (pursuant to a plan approved by the City’s planning department) is $2.1 million. 
5. This funding will be provided from existing serial bond proceeds, or from a new bond anticipation note. 
6. The City would receive a first lien position on a turn-key parking and vending facility (and the real estate upon which it sits) along with a lease equivalent to the length of the bond repayment term. 
7. ON will operate the facility on behalf of ON and the City.
8. Revenues would first cover:
          A: Reasonable pre-determined fixed costs to operate the facility.
          B: Amortized repayment of any past due taxes (payable to City/county/school) over five years.
          C: Current taxes (payable to City/county/school) Approx $370,000 per year.
          D: Debt service (to City’s bond lender.)
9. Net proceeds of parking and vending would be split as follows: 15% to the City; 85% to ON. 
10: The City continues to get 100% of taxes, plus 15% of net revenue on business.
11. ON pays all expenses (including debt service) and takes all risks.
12. The site would have an official municipal designation for information, and ON will work with the City to help design and implement information on attractions in the city.
13. The site would have off-site signage opportunities directing tourists to the site and on site signage directing tourists to attractions in the city.
14. This developer/city relationship will be structured to comply with the bonding “safe harbor” provisions which govern relationships between developers and municipalities in tax-exempt bonding situations.
15. The property will operate as a tourist information, vending and parking facility until the bonds are paid off, or ON pre-pays the debt (along with any other amount due the City under the agreement.)
16: In the event ON fails to make payments due under the agreement, the City may take the property for the outstanding amount due on the bonds.
Yours
Frank Parlato
One Niagara

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